Airlines Face Cancellation
Of Their Insurance Policies

International airlines that face a loss of passengers and higher fuel prices as a result of last week's terrorist attacks have a new headache: Their insurance has been canceled.

A letter sent to airlines this week gives seven-day notice of the cancellation of existing war-risk insurance policies, according to spokesmen for several carriers. The notification tells carriers they can take out new policies, but that those policies will be more restricted in their coverage and more expensive than the previous contracts. The...